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  <h1>How to make the product more marketable</h1>

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  <p class="toc_title">Contents</p>
  <ul class="toc_list">
    <li><a href="#question_1">Premium</a>
  <li><a href="#question_2">Product design</a>
  <li><a href="#question_3">Others</a>

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    <span id="question_1">Premium</span>
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      If the preiums are too high, you can
      <ul>
        <li>
          Consider the distribution channel used, if the policies sold through this distribution channel are price-sensitive.
        </li>
        <li>
          pay lower commission, but less incentive for brokers to sell.
        </li>
        <li>
          Lower profit margin, but need to sell more business to maintain existing profits
        </li>
        <li>
          improve effieciency, reduce expenses
        </li>
        <li>
          change investment strategy by adopting a higher risk approach
        </li>
        <li>
          Reduce elements of options / guarantees
        </li>
        <li>
          Reduce underwriting costs, may may lead to poorer claim experience
        </li>
        <li>
          Invest in riskier assets aiming to achieve a higher return.
          But the extent to which this strategy can be used depends on the level of free asset.
        </li>
      </ul>
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    <span id="question_2">Product design</span>
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      <ul>
        <li>
          Include additional cover, e.g critical illness, other illness
        </li>
        <li>
          include options for renewability or convertibility
        </li>

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    <span id="question_3">Others</span>
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      <ul>
        <li>
           consider changes to the product design. e.g. remove options
        </li>
        <li>
          cross subsidize to reduce premiums. e.g. selling term assurance as a loss leader and hopefully, sell other more profitable contracts
        </li>
        <li>
          review reinsurance arrangements
        </li>
        <li>
          ensure that all possible tax efficiency are exploited.
        </li>
        <li>
          develop new distribution channels that maybe less price-sensitive (direct sales force, tied agents)
        </li>
        <li>
          fall in business may simply due to external factors, (e.g. recession, changing in buying habbits, or tax treatment of insurance)
        </li>
        <li>
          increase marketing budgets to improve profit. Risk: we spend money in the market but we don't bring in the new business.
        </li>
      </ul>
      </ul>
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  <p> Author: Mengke, Lyu</p>

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